Shares of Kirloskar Ferrous Industries dropped over 2% after the company announced disappointing Q2 FY25 results. As of 10:29 am, the stock was trading 2.51% lower at ₹651.85 on the NSE, as investors reacted to a decline in profitability and margins despite a rise in sales.
For the quarter ended September 2024, the company reported a 6.82% increase in sales, reaching ₹1,666.02 crore compared to ₹1,559.69 crore in the same period last year. However, EBITDA declined by 34.3%, with EBITDA margins dropping to 33% from 41% year-over-year. Kirloskar Ferrous Industries’ net profit also saw a slight dip, falling 4.92% to ₹77.64 crore from ₹81.66 crore in Q2 FY24.
The company’s operating profit margin (OPM) decreased to 11.65% from 16.24% a year ago, reflecting higher costs or lower operational efficiency. Profit Before Depreciation and Tax (PBDT) dropped 25% to ₹170.87 crore, while Profit Before Tax (PBT) declined by 37% to ₹107.80 crore.
The stock’s decline highlights investor concerns over shrinking margins and declining profitability, despite a steady increase in sales.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. The author or Business Upturn is not liable for any losses arising from the use of this information.
